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Crude oil biodegradation. Refer to the Journal of Petroleum Geology (April 2010) study of the environmental factors associated with biodegradation in crude oil reservoirs, Exercise 6.38 (p. 350). Recall that 16 water specimens were randomly selected from various locations in a reservoir on the floor of a mine and that the amount of dioxide (milligrams/liter)—a measure of biodegradation—as well as presence of oil were determined for each specimen. These data are reproduced in the accompanying table.

a. Conduct a test to determine if the true mean amount of dioxide present in water specimens that contained oil was less than 3 milligrams/liter. Use\(\alpha = .10\)

Short Answer

Expert verified
  1. The test statistic is -14.14
    We reject the null hypothesis

Step by step solution

01

Specifying the hypothesis

The null and alternative hypothesis are given by

\(\begin{aligned}{H_0}:\mu = 3\\{H_a}:\mu < 3\end{aligned}\)

02

calculating the mean and standard deviation

a) The mean and standard deviation is calculated as

\(\begin{aligned}\bar x &= \frac{{0.5 + 1.3 + 0.4 + 0.2 + 0.5 + 0.2}}{6}\\ &= \frac{{3.1}}{6}\\ &= 0.51\end{aligned}\)

\(\begin{aligned}sd &= \sqrt {\frac{{{{\left( { - 0.01} \right)}^2} + {{\left( {0.79} \right)}^2} + {{\left( { - 0.11} \right)}^2} + {{\left( { - 0.31} \right)}^2} + {{\left( { - 0.01} \right)}^2} + {{\left( { - 0.31} \right)}^2}}}{5}} \\ &= \sqrt {\frac{{0.0001 + .6241 + 0.0121 + 0.0961 + 0.0001 + 0.0961}}{5}} \\ &= \sqrt {\frac{{0.9375}}{5}} \\ &= 0.433\end{aligned}\)

Therefore, the mean and standard deviation are 0.51 and 0.433.

03

Test statistic

The test statistic is calculated as

\(\begin{aligned}t &= \frac{{\bar x - \mu }}{{\frac{s}{{\sqrt n }}}}\\ &= \frac{{0.51 - 3}}{{\frac{{0.433}}{{\sqrt 6 }}}}\\ &= \frac{{ - 2.49}}{{0.176}}\\ &= - 14.14\end{aligned}\)

Therefore, the test statistic is -14.14.

Degrees of freedom are

\(\begin{aligned}df &= n - 1\\ &= 6 - 1\\ &= 5\end{aligned}\)

For \(\alpha = .10\,and\,df = 5\)

The tabulated value is -1.47.

The calculated value is less than the tabulated value.

Therefore, we reject the null hypothesis.

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Most popular questions from this chapter

In a test of \({H_0}:\mu = 100\) against \({H_a}:\mu \ne 100\), the sample data yielded the test statistic z = 2.17. Find the p-value for the test.

Refer to Exercise 7.99.

a. Find b for each of the following values of the population mean: 74, 72, 70, 68, and 66.

b. Plot each value of b you obtained in part a against its associated population mean. Show b on the vertical axis and m on the horizontal axis. Draw a curve through the five points on your graph.

c. Use your graph of part b to find the approximate probability that the hypothesis test will lead to a Type II error when m = 73.

d. Convert each of the b values you calculated in part a to the power of the test at the specified value of m. Plot the power on the vertical axis against m on the horizontal axis. Compare the graph of part b with the power curve of this part.

e. Examine the graphs of parts b and d. Explain what they reveal about the relationships among the distance between the true mean m and the null hypothesized mean m0, the value of b, and the power.

: A random sample of n = 200 observations from a binomial population yield

p^=0.29

a. Test H0:p=0.35 against H0:p<0.35. Usea=0.05.

We reject the null hypothesis when the test statistic falls in the rejection region, but we do not accept the null hypothesis when the test statistic does not fall in the rejection region. Why?

Trading skills of institutional investors. Refer to The Journal of Finance (April 2011) analysis of trading skills of institutional investors, Exercise 7.36 (p. 410). Recall that the study focused on “round-trip” trades, i.e., trades in which the same stock was both bought and sold in the same quarter. In a random sample of 200 round-trip trades made by institutional investors, the sample standard deviation of the rates of return was 8.82%. One property of a consistent performance of institutional investors is a small variance in the rates of return of round-trip trades, say, a standard deviation of less than 10%.

a. Specify the null and alternative hypotheses for determining whether the population of institutional investors performs consistently.

b. Find the rejection region for the test usingα=.05

c. Interpret the value of in the words of the problem.

d. A Minitab printout of the analysis is shown (next column). Locate the test statistic andp-value on the printout.

e. Give the appropriate conclusion in the words of the problem.

f. What assumptions about the data are required for the inference to be valid?


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